What Are The Top 5 Things To Look For in a CPA

Question

What are some questions I should ask CPAs to determine who would be a good fit for my team? What are 5 aspects of a good CPA for REI?

Christopher Smith · Answer

1) Confirm that a CPA is needed, bookkeeping services might suffice (and might be  dramatically less expensive), IF your accounting requirements are basic and you possess adequate tax knowledge (this is my situation).

If a CPA is required,

ensure the person is in fact currently licensed in your state and has no record of any disciplinary issues.

If so then

Years of experience and areas of specialization. There really isn't much substitute for actual hands on experience working in the area your activities will be focused. But remember the more experience likely the higher the billing rate will be so it will require some judgement to assess who meets your needs best.

On a related theme you might ask for a name of some of this person's clients that are also engaged in activities similar to yours, or at least some general background on these clients if names are not to be revealed.

You might ask your attorney or banker or insurance agent (if you have one or more) for a referral. These types typically network closely together and will generally turn you on to solid and reputable professionals based upon your specific needs.

Size of the CPA firm may be of interest. The ability to appropriately delegate to lower billing yet fully competent professional staff can help perform your work more quickly, efficiently and cost effectively.

Proximity can be a factor but less so in this day and age. The ability to drive to the CPAs office is a small plus, as opposed to a firm that may not have an office in your general locale.

Mike Dymski · Answer

https://www.biggerpockets.com/renewsblog/2015/03/0...

Check out the attached blog on the subject and other blogs from Brandon on working with CPAs.

Michael Lucero · Answer

How do your fees work and what are they, what is your experience in working with real estate investors, do you invest in real estate yourself, do you have an extensive network with other professionals in REI, such as attorneys, title co's, agents, etc.

You basically would like to find a CPA who specializes or knows a lot about real estate investing, so cater the questions around that.

You basically would like to find a CPA who specializes or knows a lot about real estate investing, so cater the questions around that.

Casey Faul · Answer

@Taylor Brugna, Thank you for sharing those points especially about communication.  I work full time in healthcare IT and I can relate to the value of communication. I have rubbed shoulders with some accountants to know that January through April is Christmas and to be patient with them. LOL!

What Are The Top 5 Things To Look For in a CPA

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